Coforge, Persistent Systems, other IT stocks surge up to 8% despite Trump doubling down on reciprocal tariffs

Donald Trump said that reciprocal tariffs kick in from April 2, 2025.

The Nifty IT surged sharply in the early session on March 5, despite US President Donald Trump reiterating his intention to implement reciprocal tariffs.

"India charges us auto tariffs of 100 percent. The system is not fair to US, it never was. On April 2, reciprocal tariffs kick in and whatever they tariff us, other countries, we will tariff them. Whatever they tax us, we will tax them," said Trump during his address to the Joint Session of the Congress.

With reduced business and consumer confidence, investors are more uncertain regarding the growth outlook of the Indian IT landscape, that depends on US for a large chunk of its revenue.

However, despite this threat, export-orient IT stocks surged sharply. Coforge, Persistent Systems, Mphasis stocks gained, while the Nifty IT index was up 1.6 percent.

Also Read | 'Whatever they tax us, we tax them': Trump reiterates trade policy, says reciprocal tariffs to take effect from April 2

Experts have been extremely cautious around Donald Trump's threats of tariffs. "Uncertainty unleashed by Trump tariffs is reigning supreme now and this is weighing on markets. Consequently trading volumes have dipped sharply. Market drifting down on low volumes doesn’t indicate a sustained downtrend from the current levels. In the ongoing chaotic scenario, any news and developments can trigger market moves," said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

He added that it would be difficult for the US to get away unscathed from the retaliatory tariffs imposed by China, Canada and Mexico. Inflation in the U.S. will rise and the Fed will sound hawkish. "A sharp correction in the US stock market is likely. This will hurt Trump’s popularity and the negative wealth effect of a sharp market correction can aggravate the growth slowdown in the US. Soon the Trump regime will realise this," Vijayakumar noted.

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